Question

In: Statistics and Probability

How do you interpret the unstandardized regression coefficient for a predictor variable? If the regression coefficient...

How do you interpret the unstandardized regression coefficient for a predictor variable? If the regression coefficient for a predictor variable is .52, what does that mean? If the regression coefficient for a predictor variable is -.47, what does that mean?

Solutions

Expert Solution

SOLUTION-

1.) THE SIGN OF THE REGRESSION COEFFICIENT TELLS US WHETHER THERE IS A POSITIVE OR NEGATIVE CORRELATION BETWEEN EACH OF THE INDEPENDENT VARIABLE AND THE DEPENDENT VARIABLE.

SO, IF THE REGRESSION COEFFICIENT FOR THE PREDICTOR VARIABLE IS 0.52, THIS INDICATES A POSITIVE CORRELATION BETWEEN THE INDEPENDENT AND DEPENDENT VARIABLES. ALSO IT INDICATES THAT AS THE VALUE OF THE INDEPENDENT VARIABLE INCREASES, MEAN OF THE DEPENDENT VARIABLE ALSO TEND TO INCREASE.

NOW, IF THE REGRESSION COEFFICIENT FOR THE PREDICTOR VARIABLE IS -0.47, THIS INDICATES A NEGATIVE CORRELATION BETWEEN THE INDEPENDENT AND DEPENDENT VARIABLES. ALSO IT INDICATES THAT AS THE VALUE OF THE INDEPENDENT VARIABLE INCREASES, MEAN OF THE DEPENDENT VARIABLE ALSO TEND TO DECREASE.

2.) ALSO, IF THE REGRESSION COEFFICIENT IS 0.52, A ONE-UNIT CHANGE IN THE INDEPENDENT VARIABLE CAUSES THE MEAN OF THE DEPENDENT VARIABLE TO CHANGE BY 52%

  IF THE REGRESSION COEFFICIENT IS -0.47, A ONE-UNIT CHANGE IN THE INDEPENDENT VARIABLE CAUSES THE MEAN OF THE DEPENDENT VARIABLE TO CHANGE BY 47%

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